GlobeSt.com: What’s the reason the refinance market is so frantic? Is it mainly that low rates are inciting more borrowers to refinance?

Wilcox: The driving force is the pure economics of cheap money. We’re financing properties at the lowest interest rates I have ever seen. We have seen 10–year money in the low 3’s, 15-year lending in the mid 3’s, even 20-year money in the high 3’s.

GlobeSt.com: And the investors are motivated by the perceived safety of the real estate investments?

Wilcox: Yes, lenders are even offering forward commitments. If a client has a transaction that needs to open six, twelve, even 18 months in the future, it is possible to lock in a transaction today at today’s rates, although the client may have to pay a premium.

GlobeSt.com: What impact do you see from the tighter federal regulation of lenders?

Wilcox: The underwriting practices became very strict over the past two or three years. Just now, we’re seeing the lenders lending a little bit higher loan-to-value, and being a little more creative on loan structure. It’s not back to 2006, but it’s looser than it was a year or two ago.

GlobeSt.com: Is multifamily property going to continue to be the darling of the investors?

Wilcox: Multi-family is definitely on top of the food chain with regard to what lenders prefer. We are part of a national network. Last year it financed $7.6 billion with 190 different lenders, the bulk of that really apartments and warehouse properties. Next would be multi-family, and then grocery-anchored shopping centers that are well-leased, and warehouse properties that are well-located and leased. More lenders are entering the hotel market. Office is the tough one – only if it’s got a good location and multi-tenanted.

GlobeSt.com: Your crystal ball says more of the same for the rest of the year?

Wilcox: I think interest rates will stay down. But a lot of competitive lenders have already put out a lot of money this year. By the end of the year, we think there will be a shorter supply.